- Litecoin price breaks $120, signaling potential for a rally toward the $200 resistance.
- RSI shows bullish divergence, pointing to weakening bearish momentum for Litecoin.
- Litecoin price breakout above $120 suggests strong upward momentum and potential gains ahead.
Litecoin price has recently shown immense progress breaking through the crucial $120 resistance and making analysts question whether it can now aim at the magical $200 mark. This rise has increased interest among traders and investors as it shows promise of further increases. As the volume and active traders continue to increase in the market, the next significant level of resistance can be tested in Litecoin shortly.
Litecoin Price Shows Strong Momentum and RSI Divergence
Late Litecoin price surging to be above $120 is an indication that the market has soon shifted sands after several months spent on consolidation. The new resistance level is currently $200, which was last traded in 2021 during the peak.
CryptoSurf, a leading crypto analyst, remarked that as long as Litecoin is able to maintain its momentum, the latter could experience substantial gains and may hit new highs.
Source: CryptoSurf/X
The Relative Strength Index (RSI) of Litecoin indicates a bullish divergence, with the RSI increasing since the end of 2023, albeit the price making lower lows. This indicates the weakening of bearish dynamics and rising demand.
When the RSI nears the 50 level, this can also indicate a more prolonged bullish phase. Bullish breakout above $120 and the rising RSI strengthen the position that we could see an upward breakout to the $200 mark.
Liquidation Data Indicates Increased Buying Pressure
The current price action in Litecoin is under considerable upward pressure with a growing volume (+11.91%, $1.91B) and strong short liquidations with more than $2.5 million positions closed over the last 24 hours.
The Litecoin price rise is associated with an open interest decline (-5.00%), which means traders are closing positions, and it can be explained by the current short squeeze.
Source: CoinGlass
The market sentiment is still bullish and longs are prominent, most notably among rich traders (the long/short ratio is 2.49 according to Binance). The $200 resistance level is getting more realistic as Litecoin price maintains above $120. The positive outlook is further strengthened by the continued short liquidations which have the effect of pushing the Litecoin price upward.
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